Mason Hawkins

Mason Hawkins

Last Update: 2014-03-07

Number of Stocks: 33
Number of New Stocks: 3

Total Value: $20,427 Mil
Q/Q Turnover: 4%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Mason Hawkins Watch

  • Longleaf’s Mason Hawkins Decreases DineEquity Inc. Shares

    As of Nov. 27, Mason Hawkins of Tennessee-based Southeastern Asset Management, which is the adviser to Longleaf Partners Funds, has reported a 10 percent decrease in his stake of franchising company DineEquity Inc. (DIN), according to GuruFocus Real Time Picks.

    Reducing more than 310,000 of his shares at an average price of $62, this is Hawkins’ fourth stake reduction of DineEquity since acquiring the stock in the third quarter of 2008. Starting off with about 3.2 million shares in the beginning of his holding history, Hawkins now has a shareholding of 2,798,762.  


  • Longleaf Partners Comments on Chesapeake Energy

    Chesapeake (CHK) gained 2% in the quarter and rose39% from its low point in May. The substantial governance changes we discussed in last quarter’s report not only lifted the stock, but also improved the prospects for more conservative capital allocation going forward. The company announced $6.9 billion in asset sales during the quarter and anticipates approximately $2 billion more this year. In spite of the company’s progress, the stock was down 14% YTD. Although the natural gas price moved up in the quarter, it remains below the marginal cost of production for most plays. Natural gas also impacted CONSOL,which was flat in the quarter but down 10% YTD.Continued switching to cheap gas has pressured coal prices, and CONSOL owns both natural resources. The supply/demand imbalance should self-correct as natural gas drilling has declined substantially in response to low price, and demand has increased at electricity plants. Longer term demand from industrial plants, LNG exports,and conversion of trucks to this clean and abundant energy source would support an increase in natural gas prices and a higher value for both Chesapeake and CONSOL.

    From Longleaf Partners' Q3 2012 Report.  


  • Longleaf Partners Q3 2012 Report



  • Mason Hawkins Adds Shares of Vail Resorts

    Mason Hawkins has increased his stake in Vail Resorts Inc. (MTN) by 0.67 percent, according to GuruFocus Real Time Picks. The Southeastern Asset Management founder and value investor added 24,000 shares in the transaction, which raised his total position size from 3,565,758 shares to 3,589,758 shares. It also boosted his ownership stake in the company to 10.1 percent.

    Hawkins purchased the shares on Oct. 10, when the share price closed at $57.48. The stock is up 32% year to date and down 2% for the past five years.  


  • Chesapeake CEO Aubrey McClendon Discusses Oil, Natural Gas and the Future of Chesapeake Energy

    Chesapeake Energy (CHK) is a pretty significant investment for well-known value investors Mohnish Pabrai and Mason Hawkins/Staley Cates at Longleaf Partners. The company has recently undergone some corporate governance improvements and major asset sales that are improving its balance sheet.

    CEO Aubrey McClendon discusses (with Cramer) the changes at Chesapeake, the future of the company and the state of the energy market in North America.  


  • Longleaf Partners Q3 Letter to Shareholders



  • Mason Hawkins of Longleaf Partners Interview with GuruFocus

    Mason Hawkins is chairman and chief executive officer of Longleaf Partners, an investment advisory firm with $34 billion in assets under management. He recently took investing questions from GuruFocus readers. Here are his responses:

    Investment Philosophy  


  • Longleaf Partners June 2012 Semi-Annual Report

    Includes a discussion of Chesapeake Energy (CHK), Dell (DELL), Cemex (CX) and Berkshire Hathaway (BRK.A)(BRK.B):

    Long Leaf 2012 Semiannual  


  • Mason Hawkins of Longleaf Funds Answering Investing Questions Now

    GuruFocus welcomes renowned investor Mason Hawkins for an interview in which he will be answering readers’ questions. To ask your question, post it in the comments section below.

    Mason Hawkins is chairman and chief executive officer of Southeastern Asset Management Inc., an investment advisory firm with $34 billion in assets under management. At Southeastern, he and his team seek to achieve long-term absolute returns with minimum risk in their portfolio of 18-22 businesses, focused on their best ideas.  


  • Longleaf Partners Second-Quarter Letter from Mason Hawkins

    Broad uncertainty about economic growth – in the U.S., China, and most prevalently in Europe – weighed down global stock markets over the last three months. The S&P 500 was down 2.8%; the Russell 2000 lost 3.5%; and non-U.S. markets took a bigger hit as EAFE declined 7.1%. While the Small-Cap Fund appreciated in the quarter, Partners and International declined. These results reversed the relative standing of each Fund for the year-to-date, leaving Small-Cap ahead of the Russell 2000 but Partners and International behind their benchmarks.Within the indices and Southeastern's portfolios, stocks tied to broad economic expansion such as commodities,materials, and industrials suffered. However, most of our holdings' appraisals grew or were little changed, because our models already assumed slow growth over the next few years and revenue declines in Europe through 2014. With the recent market schizophrenia, we trimmed holdings that had approached their values or become overweight. Conversely, as certain stocks declined relative to their appraisals, we added, as did a number of our management partners. We also identified a few new qualifiers, primarily in names we have previously owned, where we typically have a deeper knowledge.

    Portfolio Discussion Norms
    Volatile quarterly performance often accompanies concentrated investing. Over Southeastern's almost four decades, the twenty or so positions we have owned at any given point have fallen into three categories in client discussions. The first are those holdings that are rarely mentioned because their gains make them obvious winners such as DirecTV (DTV), FedEx (FEDX), DineEquity (DIN), tw telecom (TWTC), Fairfax (FFH), or Vodafone (VOD) today. Most names fall into the second category, which also receives little attention. These companies generally are meeting operating expectations, but their stocks have not appreciated significantly. The large majority of discussion focuses on the third category, the few names that are in the penalty box at the time either because of real or perceived business challenges or management issues often highlighted in headlines. We expect and welcome discussing holdings that are most out of favor. We think it is important, however, to put those names in the context of what is normal within our investment approach. We will not be right on every investment. Over the long run if we are right on two-thirds of our picks, and wrong without losing substantial permanent capital on the other third, we can achieve our inflation plus 10% goal as long as we adhere to our margin of safety discipline. Given portfolio discussion norms, we will not elaborate here on Disney, Travelers, Abbott, Texas Industries, tw telecom, Vail Resorts, Scripps Networks, and Henderson Land – the largest contributors to second quarter performance. Instead, we review the recent events, investment case, and broader lessons from our most controversial name. Although Chesapeake Energy is only in the Partners Fund, its recent visibility has generated discussions with shareholders across the three Funds.  


  • Mason Hawkins Buys Stake in CONSOL Energy as Coal Stocks Fall

    Mason Hawkins, founder of $34 billion mutual fund firm Southeastern Asset Management, increased his position in CONSOL Energy (CNX) by 440.6 percent this week, according to GuruFocus Real Time Picks. He now owns approximately 10 percent of the coal and natural gas company. Hawkins has an established set of criteria when selecting companies to invest in, the chief of which being whether they will perform over a long-term time period.

    The result of his strategy has been substantial long-term returns. Since inception in 1987 his Partners Fund returned 1257.67 percent, for the last five years (4.42 percent) and the last three years 102.9 percent. In the first quarter of 2012 he was in an up period, returning 12.91 percent.  


  • Mason Hawkins' Southeastern Asset Management Comments on Level 3 Communications

    Summary: Southeastern is as well-positioned at Level 3 (LVLT) as they have ever been. The debt is very conservatively positioned. The growing operating cash and free cash generation more than takes care of any creditor concerns that even the critics had. The tailwind is blowing even stronger today as more people share video on all devices. The company is in a critical and enviable position. They are in discussion with them on how to leverage that correctly. Units are growing nicely. Pricing is stronger than it has ever been and will get even better. At the next meeting they think their thesis will be even better. Their complaints about Level 3 have only been a function of sales and pricing where they thought they were a little bit short. New discipline in the boardroom is helping that and results are positive. Shorts are going to hammer the company though. Will not be a straight line or clean thing PR-wise. They have owner-operators on the board also.

    Listen to the complete audio here.  


  • Mason Hawkins' Southeastern Asset Management Comments on Dell

    Summary: Of everything they own, they measure on intrinsic value of the business, and on that front Dell (DELL) has blown away all expectations. They are organically growing in the 20s; bears are focusing on metric they want to, that revenue growth is low. Southeastern does not care about that. Most relevant that they are growing profits. They are not worried about it at this point. Dell has evolved from a PC business to becoming the IBM for small and medium-sized businesses, domestically and globally. Sells for cheaper multiples than IBM and believe it will outgrow IBM in the next decade. Believes there could be a surprise after November when U.S. companies are not treated discriminatorily as they are today and our tax policies allow us to bring our foreign cash back to the U.S. Dell has $5 in net cash predominately overseas and if that comes back to the U.S., they will be more aggressive on the repurchase front therefore building more intrinsic value per share at low risk. That cash earns very little and contributes almost nothing to current earnings so there’s great opportunity to put it toward acquisitions to add to earnings power or used prospectively if we have the laws changed for us to repatriate it back to the U.S.

    Listen to complete audio here.  


  • Mason Hawkins' Southeastern Asset Management Comments on Cemex

    Summary: One interesting thing about Cemex (CX) is the importance of the U.S. to its value is really the whole swing factor. As the peak of the cycle, which we will never get back to, they generated $2.5 billion of EBITDA. Southeastern does not believe they will ever get back to that point, but if they got half way back, that would be $2 of free cash flow on a $2 stock, which is worth the wait. The second biggest reason is Mexico. Mexico is the most interesting way to take advantage of Chinese labor costs. Many good things going on in Mexico despite gruesome headlines; it’s the best economic place to be on the globe. In the next decades the U.S. will invest huge dollars in updating infrastructure. Southeastern is making big bets on this improvement in infrastructure.

    Listen to the complete audio here.  


  • Mason Hawkins' Southeastern Asset Management on Chesapeake Energy

    Summary: Chesapeake (CHK)’s natural gas assets are the best in the world, which does not mean much to the market right now, but it is still cheap. The big debate is about leadership. Southeastern does not care for the founder’s wealth program. As company grew, it made less sense and potential grew for conflict of interest. Now the company has announced the end of the program and that they will separate the roles of chairman and CEO. There are positives and negatives in partnering with McClendon, and the positives have outweighed the negatives. They believe the best source for energy right now is natural gas and it will be rewarding for long-term shareholders.

    Listen to the complete audio here.  


  • Mason Hawkins' Southeastern Discusses Abbott Labs

    Southeastern's Ross Glotzbach discusses the firm's investment in Abbott Labs.
    Summary: Southeastern bought Abbott Labs (ABT) last year, after meeting the CEO and checking out his background. Purchased shares during the market turmoil of last summer. Abbott was a superior choice to Campbell’s Soup (CPB), and used proceeds of sales of that company to buy more Abbott. Since then, Abbott has appreciated while Campbell’s has languished.  


  • Mason Hawkins' Southeastern Asset Management on Undervalued European Stock Ferrovial

    Summary: Ferrovial (FER) is located in Spain and a member of the IBEX 35, the worst performing stock index for 2012. It is being misperceived as a highly leveraged Spanish construction company. However, only 5% of the total value of Ferrovial is derived from Spanish construction. The company is net cash and it has very valuable assets not located in Spain or the eurozone.

    Hear the full audio below:  


  • Mason Hawkins' Long Leaf Partners Comments on Philips Electronics

    Long Leaf Partners’ Scott Cobb discusses undervalued European stocks in the audio below.

    Summary: Owns Philips (PHG) for the third time because they like to recycle ideas. It’s cheap today because people see it as a tired old electronics company, which it is not. People also worry about exposure to Europe. Long Leaf values it at 27 euros per share, assuming it meets the low end of its 2013 targets.  


  • Mason Hawkins' Longleaf Partners First Quarter Letter

    Southeastern is pleased to report a first quarter of strong absolute returns in all three Longleaf Funds as well as results above the benchmark indices for both the Partners and International Funds. Most holdings rose, with many posting significant double-digit gains. Our companies' growing intrinsic values and an improving U.S. economy powered stock returns. Even following the solid gains over the last three months, each Fund's P/V remains attractively below Southeastern's long-term average in the high-60%s.

      


  • Longleaf Partners 2011 Annual Letter to Shareholders – Still Very Long Dell and Chesapeake

    Perhaps the most interesting read in the business as Longleaf provides a good discussion of its concentrated portfolio.

    Most interesting to me is their discussion of Chesapeake Energy, which has gone nowhere for a long time and is a stock I own personally.  


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